RRJ Capital to Cornerstone Jingrui Holdings Hong Kong IPO

Jingrui Holdings, a Shanghai-based property developer launching its Hong Kong initial public offering this week, has signed up private equity firm RRJ Capital as a cornerstone investor, according to a person with knowledge of the matter.

Jingrui, which is conducting a roadshow for the IPO this week, is planning to raise about $200 million in a Hong Kong listing. Singapore- and Hong Kong-based RRJ will commit $50 million to the IPO, the person said. The indicative price range of Jingrui’s IPO is HK$4.20 to HK$5.48 a share.

Cornerstone investors are guaranteed large allotments in IPOs in exchange for agreeing to a lockup period during which they aren’t allowed to sell their shares.

The investment would mark RRJ’s second investment in China’s real estate sector, which is showing strong signs of recovery as some developers have reported stronger-than-expected sales figures in recent months. RRJ said last week that it invested $50 million into CIFI Holdings (Group) Co. by subscribing to new shares issued by the Shanghai-based developer, or about 4.4% of CIFI’s existing issued shares.

RRJ was founded in 2011 by Richard Ong, a former Goldman Sachs Group Inc. banker and founding partner of China-focused Hopu Investment Management Co., and raised $3.5 billion for its second pan-Asia fund this year.